Houston’s Pension Reform Plan Gets Senate Approval

AUSTIN, TX -- Mayor Sylvester Turner’s pension reform plan cleared a major hurdle with the state senate voting 25-5 Monday.

Now, Turner’s plan will have to pass muster with state house leaders before going to Governor Greg Abbott to be signed.

"Today, the Senate approved a locally developed and agreed-to solution that will place the city of Houston on a sustainable financial path," said Mayor Turner. "The Senate has listened to the will of stakeholders in Houston."

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Turner, who presented his pension plan to the state legislature in January, warned last week that failure to pass the pension reform plan would result in as many as 2,200 layoffs, many of which would impact public safety to an depleted police department.

Read Also: Mayor Warns 2,200 Layoffs Loom For Houston City Employees If Pension Plan Fails

Turner’s pension reform plan is designed to eliminate $8.1 billion in unfunded pension liability within 30 years, reduces benefits avoiding more than $2.5 billion in future costs, and will include the issuance of at least $1 billion in bonds.

Turner’s pension plan is expected to be heard by the House committee on Saturday.

Image: Shuttestock

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